TransCanada to Host Open Houses for Proposed Keystone Oil Pipeline Cushing Extension

CALGARY, Alberta – June 7, 2006 – TransCanada Corporation (TransCanada) will host open house meetings on the Keystone Oil Pipeline project the week of June 19, 2006. The meetings are intended to provide stakeholders along the corridor of the proposed Cushing Extension with information and updates about the crude oil pipeline project and to solicit feedback. The Keystone Oil Pipeline and Cushing Extension would transport reliable North American oil supplies to help meet rising North American demand for energy.

TransCanada has proposed the extension of the Keystone Pipeline from just north of the Nebraska/Kansas border to Cushing, Oklahoma in response to interest from pipeline customers. Cushing is a major crude oil marketing/refining and pipeline hub.

At the open house meetings, landowners, public officials and other affected stakeholders will be able to obtain information on topics such as the need for the Keystone Pipeline and the Cushing Extension, detailed information on routing, environmental assessments, pipeline easements, pipeline design, construction activities and schedules, land restoration, public consultation efforts, and pipeline operations and safety. The public is welcome to drop by the open houses to learn more about the project from members of the Keystone project team and to provide feedback.

The proposed 1,830-mile, US$2.1 billion Keystone Oil Pipeline mainline system would transport approximately 435,000 barrels of oil per day from an oil supply-hub near Hardisty, Alberta to markets at Wood River and Patoka, Illinois. The project will require the construction of nearly 1,070 miles of new pipe along the U.S. portion of the proposed route. In Canada, Keystone would require the conversion of 530 miles of existing TransCanada pipeline from natural gas to crude oil in Alberta, Saskatchewan and Manitoba, as well as the construction of 230 miles of new pipe.

The Cushing Extension would add approximately 291 miles of new pipe in Nebraska, Kansas and Oklahoma at an estimated cost of US$445 million. The extension would connect the Keystone mainline system to the pipeline refining and terminal hub in Cushing, Oklahoma.

The Keystone mainline system and the Cushing Extension will require regulatory approvals from a variety of Canadian and U.S. agencies before construction can begin. Input from all stakeholders will be received through the regulatory process and through public consultation.

Public and stakeholder consultation, and detailed environmental assessments and field studies, along with engineering work will continue throughout 2006. TransCanada is preparing major regulatory applications for submission this year. An Open Season during which shipping customers can make contractual commitments for the Cushing Extension is scheduled for late 2006.

Construction on the Keystone mainline system and Cushing Extension would start in 2008, with commercial operations expected to begin as early as the fourth quarter of 2009.

To view a map of the proposed pipeline route and proposed extensions and obtain other information about the Keystone Pipeline, please visit www.transcanada.com/keystone. The Keystone Pipeline toll-free number is 1-866-717-7473.

Open House Details

Keystone Pipeline Open Houses for landowners and the general public will be held from 4:00 to 7:30 p.m. In addition, members of the media are invited to join community leaders for a preview presentation beginning at 3:00 p.m.

Open Houses will be held in the following communities:

Washington, Kansas

El Dorado, Kansas

First National Bank
101 Commercial Street
Monday, June 19, 2006
El Dorado Civic Center
201 E. Central
Wednesday, June 21, 2006

Abilene, Kansas

Morrison, Oklahoma

Abilene Civic Center
201 N.W. Second Street
Tuesday, June 20, 2006
Morrison Park Pavilion
Casey Trail & Hwy. 64
Thursday, June 22, 2006

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada’s network of more than 25,600 miles (41,000 kilometres) of wholly owned pipeline transports the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.

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Media Inquiries:

TransCanada
Jennifer Varey
(403) 920-7859 or Toll Free (800) 608-7859

Investor & Analyst Inquiries:

David Moneta/Myles Dougan
(403) 920-7911